Side Gig vs. Investing: Which Makes Americans More Money Over 12 Months?
Written by
Martin Dasko
Edited by
Jenna Klaverweiden
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According to a recent MyPerfectResume survey, 72% of American workers rely on another source of income outside of their main job to get by. The survey found that the two most popular sources of supplemental income were freelance/gig work and investments (crypto, stocks, etc.).
GOBankingRates consulted with experts and ran the calculations to determine whether working a side gig or investing will make Americans more money over 12 months.
Also see four grandma-approved side gigs saving boomer budgets in 2026.
Side Gig vs. Investing
Income from a side gig depends on the venture you choose and the amount of time that you have. GOBankingRates used an hourly wage range of $15 to $30 based on average figures. Jobs included food delivery driver, freelance writer and dog walker. The assumption is that you can start at $15 but increase to at least $30 an hour as you gain experience and clients.
If you work 10 hours per week on your side gig, you can bring in a monthly income of $600 to $1,200, which adds up to $7,200 to $14,400 after 12 months (not factoring in taxes). If you work more hours, then you’ll bring in even more.
“Investing in the stock market, however, will yield a profit of about 10% per year (average returns from the S&P 500 Index),” said Cody Schuiteboer, a financial expert and the president of Best Interest Financial. He pointed out that $50,000 invested will generate about $5,000 profit in 12 months.
Which One Wins?
“During the period of 12 months, side jobs will beat investments for most people due to less starting capital needed,” said Sain Rhodes, an experienced real estate consultant from Clever Offers.
Rhodes noted that a typical stock portfolio with 10% yearly returns requires an investment of at least $10,000 to produce $1,000 in a year.
“An average person employed as a side gig rideshare driver can earn this $1,000 in 6-8 weeks only. Within a year, an excellent rideshare driver can easily earn $15,000-$25,000 gross ($8,000-$15,000 net after various expenses),” Rhodes said.
If you’re starting off without much capital, you’ll have to rely on a side gig to build up your savings.
Key Considerations
While a side gig seems like the better option, there are a few factors that you can’t ignore when examining both options.
Schuiteboer emphasized that your side gig salary can be lower than your regular hourly wage, and you can’t forget the stress of additional work and the lack of free time. On the other hand, stock market investing takes no more effort once you have the necessary capital to begin.
Plus, while investing doesn’t require much effort, you have to build up your savings so you have the funds to invest. This means you may have to work a side gig to start investing.
How To Decide
“My suggestion is to pursue side gigs actively for 12-36 months and accumulate $15,000-$25,000. Then invest some of this money in stocks or purchase real estate as a passive income source, rather than continuing to work on your side job endlessly,” Rhodes said.
While a side gig will bring in more money over 12 months if you don’t have substantial capital to invest, in the long run, you’re better off focusing on using your side income to build an investment portfolio.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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